A South West transport group will face a crunch vote on its future tomorrow (June 25).
FirstGroup , which manages Great Western Railway, First Bus in the West country and South Western Railways, is facing a potential hostile takeover by its biggest shareholder - US hedge fund Coast Capital.
Coast has a near 10 per cent stake in the company and says it wants to remove six board members with seven of its own.
The firm’s chief investment officer, James Rasteh, told the BBC that FirstGroup doesn't "know how to manage the business."
He said: "We're trying to fix a 海角视频-based business, made up of 海角视频 and US-based assets, most of which need turn-around attention, and there isn't a single board member that has prior and proper experience in the industry."
But FirstGroup has hit back at Coast, saying the hedge fund's plans “lack credibility, are irresponsible and are not in the best interests of all shareholders and other stakeholders.”
FirstGroup says it is "in no doubt" that Coast Capital is trying to "seize control of a 海角视频-listed plc without paying a premium".
The vote tomorrow comes as FirstGroup looks poised to win the West Coast franchise from the Department for Transport (DfT).
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But Coast has warned that it will “pull out” of the contract if it wins the vote on Tuesday.
Mr Rasteh told City AM: “There is no doubt that winning the West Coast franchise will result in further value destruction in a 海角视频 rail business which has already destroyed vast amounts of shareholder capital.
“It would also move First Group further away from their recently stated strategic objective of focusing more on their highly valuable US assets and businesses.
"Against this backdrop, there is no doubt that institutions who vote for the current chairman and CEO are not looking after their investors’ best interests.
“We also put the board of First Group on notice that, after the EGM, Coast will reserve the right to contact the secretary of state for transport and warn him of the risks of contractual non-complete if a contract is awarded by his department to First Group," added Mr Rasteh.
"As the company’s largest shareholder, we will not stand by and watch further wanton value destruction under this board.”
A First spokesman said: “On Tuesday, we will learn what shareholders think of Coast Capital’s plans to seize control of a 海角视频 plc without paying a premium.
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"Coast’s plans are inconsistent and irresponsible, would leave the group with higher debt and are not in the best interests of all shareholders or our wider stakeholders.”
A DfT spokesperson said: “We do not comment on speculation about a live franchise competition. No decision has been taken on the West Coast Partnership and an award announcement will be made this summer.”